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Oil accelerates higher after the maxi cut in production

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Oil accelerates higher after the maxi cut in production

The price of oil accelerates higher after OPEC + ‘s decision to cut production by 2 million barrels starting in November.

WTI rose 1.7% to $ 87 a barrel while Brent rose 2% to $ 93.

Energy market participants had expected OPEC +, which includes Saudi Arabia and Russia, to impose production cuts of between 500,000 barrels and 2 million barrels.

The move represents a major reversal in production policy for the alliance, which reduced production by a record 10 million barrels per day in early 2020.

The oil cartel has since gradually reversed those record cuts, even as several OPEC + countries have struggled to meet their quotas.

Oil prices fell to around $ 80 a barrel from over $ 120 in early June due to growing fears over the prospect of a global economic downturn.

The production cut for November is an attempt to reverse this trend, despite repeated pressure from the administration of US President Joe Biden for the group to pump more to lower fuel prices ahead of next month’s midterm elections. .

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